Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Invest with McMenamins
Old 06-02-2020, 09:35 AM   #1
Full time employment: Posting here.
 
Join Date: Jul 2011
Posts: 907
Invest with McMenamins

Is anyone considering this? I have never made this type of investment. If you have any experience or thoughts, it would be appreciated.

Here is a brief summary. If you want more information, click the link below.

According to the proposal: In the coming weeks, the Company will make available to interested investors an Offering Circular containing important information about this offering, including risk factors, which should be reviewed carefully. Investors will be required to provide supporting documents proving that they are accredited investors.

This is a private placement of securities. Securities sold through private placements are restricted and not publicly traded. Shareholders may not be able to sell their Series A Shares even if a need for personal funds arises.

Information regarding documentation required to confirm accredited investor status, and the confidentiality agreement required to obtain the Offering Circular, are available in the Materials for Download.

Series A Shares will be available in three subseries: A-1, A-2, and A-3. The three subseries allow investors to choose the length and return rate of their investment. The three subseries are identical, except as to redemption periods and redemption price:
Suberies Redeemable in: Redemption Price:
A-1 Five years $1,160
A-2 Eight years $1,320
A-3 Ten years $1,480
All Series A Shares carry an annual 3% cumulative dividend. Dividends are payable when declared by the Board of Directors. Accrued dividends must be paid when shares are redeemed and on any liquidation event.
Shareholders will have the option to require that McMenamins redeem their shares at the times listed above for each subseries. Redemptions are subject to certain time and amount limits, as described in the Offering Circular -

Invest with McMenamins - Investment Details
davef is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-02-2020, 09:51 AM   #2
Moderator
braumeister's Avatar
 
Join Date: Feb 2010
Location: Flyover country
Posts: 16,690
I really like McMenamins brewpubs and I frequent them when I'm out in that part of the country. But it's a low margin industry and not suitable for investment IMHO.
__________________
I thought growing old would take longer.
braumeister is online now   Reply With Quote
Old 06-02-2020, 09:58 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Sunset's Avatar
 
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 10,376
Having seen just 1 private equity deal, I'm jaded as it turned out to be more like a private piggy bank.

I feel it's pretty risky for a 3% return, as since it's private there is nobody to sell your shares to at an appreciated price.
Your shares are to be used partially to pay off their short term debt, yet aren't interest rates at record low ? Basically you are buying out a portion of the founders investment.

I have to wonder, if Covid-19 has squeezed them so hard they need other peoples money to be saved.
It seems many of their businesses would be drastically affected: "
  • including 12 historic hotels, 2 full-service spas, 6 soaking pools, 9 theater-pubs and more.
  • 24 breweries, 2 distilleries, a winery, a creamery, coffee roastery, bakeries, and produce and flower gardens."


However, OP perhaps you are local, have been to these places, seen the daily usage ?
__________________
Fortune favors the prepared mind. ... Louis Pasteur
Sunset is online now   Reply With Quote
Old 06-02-2020, 10:09 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 10,210
Someone living near us bought a microbrewery to create a job for their son. Money loser to start with; money loser as an ongoing operation. It is in a nice mountain / national park area, so I guess visits there can be written off as Board of Directors meetings.
LOL! is offline   Reply With Quote
Old 06-02-2020, 10:14 AM   #5
Thinks s/he gets paid by the post
ExFlyBoy5's Avatar
 
Join Date: May 2013
Location: Country Living
Posts: 4,127
Quote:
Originally Posted by Sunset View Post
Having seen just 1 private equity deal, I'm jaded as it turned out to be more like a private piggy bank.

I feel it's pretty risky for a 3% return, as since it's private there is nobody to sell your shares to at an appreciated price.
Your shares are to be used partially to pay off their short term debt, yet aren't interest rates at record low ? Basically you are buying out a portion of the founders investment.

I have to wonder, if Covid-19 has squeezed them so hard they need other peoples money to be saved.
It seems many of their businesses would be drastically affected: "
  • including 12 historic hotels, 2 full-service spas, 6 soaking pools, 9 theater-pubs and more.
  • 24 breweries, 2 distilleries, a winery, a creamery, coffee roastery, bakeries, and produce and flower gardens."


However, OP perhaps you are local, have been to these places, seen the daily usage ?
I can't add much to this excellent post...but 3%? That's a lot of risk (in my opinion) for not much return. Anything that requires accreditation should be paying out at least 6% as far as I am concerned.

Quote:
Originally Posted by LOL! View Post
Someone living near us bought a microbrewery to create a job for their son. Money loser to start with; money loser as an ongoing operation. It is in a nice mountain / national park area, so I guess visits there can be written off as Board of Directors meetings.
They bought the whole freaking thing to give their kid a JOB? That is crazy!
__________________
Retired in 2014 at the Ripe Age of 40
Un-Retired in 2020 at the Ripe Age of 46
ExFlyBoy5 is offline   Reply With Quote
Old 06-02-2020, 10:46 AM   #6
Recycles dryer sheets
 
Join Date: Nov 2012
Posts: 152
The craft brewery business is pretty volatile right now. A good chunk of them are likely to go under in the next few months. https://www.brewbound.com/news/brewe...ithin-3-months

McMenamins is bigger than most and has more access to capital so maybe they can use this as an opportunity. But they rely pretty heavily on travel (all their hotels) and concerts (esp. at Edgefield) and I don't think they sell any of their beer at grocery stores. I'd want a lot better return for the risk than they are offering.
geeky_grrl is offline   Reply With Quote
Old 06-02-2020, 10:49 AM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Brat's Avatar
 
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 6,741
I really like McMenamins. They buy vintage properties and put them to good use, I don't think they made much money in the best of times. Frankly, if they established a go-fund-me account I would contribute some $. An investment - no, a community resource - yes.
__________________
Duck bjorn.
Brat is online now   Reply With Quote
Old 06-02-2020, 10:58 AM   #8
Full time employment: Posting here.
 
Join Date: Jul 2011
Posts: 907
[QUOTE=
However, OP perhaps you are local, have been to these places, seen the daily usage ?[/QUOTE]

There is a new Mc near where we live. It seems to be very successful based upon a couple of visits and passing it on the highway and seeing lots of cars. That is prior to the lockdown.

What got me interested was the reputation they have in this area. It is a local go to place for a meal if close enough to home. Or a special occasion by visiting one of their properties. The operation is respected based upon consumer feedback.
davef is offline   Reply With Quote
Old 06-02-2020, 11:00 AM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 5,708
I have seen many private equity placements and have invested in several small local ones. With an equity investment the upside is theoretically unlimited. With debt, private placement or not, it is a pretty simple risk/reward estimating job.

With any large deal like this one, you have to assume that they are down in the weeds hustling retail investors because the professionals have done the risk/reward thing and determined that the deal is unattractive. So you have to look at yourself in the mirror and channel Clint Eastwood: "...you've got to ask yourself one question: 'Do I feel lucky?' Well, do you, punk?"

One time I got a very nice 4-color glossy offering circular in the mail, then the follow-up call. I told the sales guy that I hadn't even opened it (white lie) but that any deal that had to be sold that way was guaranteed to be stinky. Thanks, but no thanks. That would be my assessment of this deal, too, without reading any details.
OldShooter is offline   Reply With Quote
Old 06-02-2020, 11:01 AM   #10
Moderator
braumeister's Avatar
 
Join Date: Feb 2010
Location: Flyover country
Posts: 16,690
Brewpubs are fascinating to many people and often considered as investments. They're popular places that attract a relatively free-spending demographic.

People also see the constant growth in the brewing industry that has been going on for decades and think it's pretty safe to expect more of the same.

But the hard truth is that it's a tough way to make a living for the vast majority. Last time I looked at the statistics, it worked out that for every seven breweries that open in this country, five close their doors forever. So even though there are always more breweries, there is also a higher percentage of new ones than you would expect. Very few new ones have to buy new brewing equipment because there is so much used equipment on the market.

Being a bit of an insider, I generally steer people away from investments like this.
__________________
I thought growing old would take longer.
braumeister is online now   Reply With Quote
Old 06-02-2020, 11:12 AM   #11
Thinks s/he gets paid by the post
Helen's Avatar
 
Join Date: Oct 2004
Location: Portland
Posts: 1,706
I like visiting McMenamin's pubs, we live a mile from the Kennedy School and always take guests there, however their food sucks.

The McMenamin brothers must be worth a fortune in real estate alone. I saw one of the brothers ordering stuff at Hippo Hardware (that's a fun store.)
Helen is offline   Reply With Quote
Old 06-02-2020, 11:47 AM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Chuckanut's Avatar
 
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 11,446
I've eaten at a few McMenamen's and I was not impressed by their food.

They do offer unique environments for eating out which is a big deal for many people. The one near me has a lot of outside seating in a garden like environment and is certainly a pleasant place to have a beer with friends. But, as I said, I would not go there for a good meal.
__________________
The worst decisions are usually made in times of anger and impatience.
Chuckanut is offline   Reply With Quote
Old 06-02-2020, 01:26 PM   #13
Moderator Emeritus
aja8888's Avatar
 
Join Date: Apr 2011
Location: The Woodlands, TX
Posts: 12,111
Quote:
Originally Posted by OldShooter View Post

With any large deal like this one, you have to assume that they are down in the weeds hustling retail investors because the professionals have done the risk/reward thing and determined that the deal is unattractive. So you have to look at yourself in the mirror and channel Clint Eastwood: "...you've got to ask yourself one question: 'Do I feel lucky?' Well, do you, punk?"

^^^ This!
__________________
Everyone has a plan until they get punched in the mouth...philosopher Mike Tyson
aja8888 is offline   Reply With Quote
Old 06-02-2020, 01:28 PM   #14
Thinks s/he gets paid by the post
 
Join Date: Jul 2015
Location: Beaverton
Posts: 1,382
So, I live in the land of the McMennamin's. Frequented Produce Row when they first got into the business. They expanded. They tanked. Then they've slowly built this empire. They were the first kids on the block. Had import beers when others didn't. Started brewing when others didn't. Famously known for mediocre food and generally bad service. I can't comment on the price of beer since now it's ridiculously expensive in Portland.

From what I understand it's $100k minimum buy in and there are some qualifications in regards to your income and/or net worth.

I had looked at a couple similar models in the past. Both in wine: Willamette Valley Vineyards and St Innocent.

I'm not going to say whether they can make it or not. I will just say they are in the one major business that's in the tank and it's called Hospitality. They are in the two subsets of that which are food/beverage and hotels. Who knows how long both of those will take to recover.

I do love their models to rehab old properties. They are great for the most part if you like sharing a bathroom where you stay.

Good luck
__________________
Jump in, the water's warm.
Bir48die is offline   Reply With Quote
Old 06-02-2020, 02:29 PM   #15
Full time employment: Posting here.
 
Join Date: Jul 2011
Posts: 907
Thanks to all for your helpful comments! It feels right now there might be other places to look for investments.
davef is offline   Reply With Quote
Old 06-02-2020, 02:43 PM   #16
Moderator
braumeister's Avatar
 
Join Date: Feb 2010
Location: Flyover country
Posts: 16,690
Good decision! You made the right choice.

Just for the record, I am actually an investor in some brewpubs and small breweries, and they are doing fine. But I've been in the brewing industry for decades and I know all the people involved extremely well and I know exactly what they are doing and what their chances of success are. There is no way an outsider could invest safely in this sort of business, which probably explains why the McMenamins are looking for outsiders to invest in them.
__________________
I thought growing old would take longer.
braumeister is online now   Reply With Quote
Old 06-02-2020, 03:09 PM   #17
Full time employment: Posting here.
 
Join Date: Sep 2007
Location: Portland
Posts: 504
Quote:
Originally Posted by Brat View Post
I really like McMenamins. They buy vintage properties and put them to good use, I don't think they made much money in the best of times. Frankly, if they established a go-fund-me account I would contribute some $. An investment - no, a community resource - yes.
+1.

We like McMenamins too. We used to hang out at McMenamins after a long day at work, it is a favorite place high tech workers here in Hillsboro OR. I bet if they have a go-fund-me account, many of us will contribute.
neihn is offline   Reply With Quote
Old 06-02-2020, 03:26 PM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Brat's Avatar
 
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 6,741
Hint, hint McMenamins!!!!
__________________
Duck bjorn.
Brat is online now   Reply With Quote
Old 06-02-2020, 03:35 PM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 5,708
Quote:
Originally Posted by braumeister View Post
... Just for the record, I am actually an investor in some brewpubs and small breweries, and they are doing fine. But I've been in the brewing industry for decades and I know all the people involved extremely well and I know exactly what they are doing and what their chances of success are. There is no way an outsider could invest safely in this sort of business, which probably explains why the McMenamins are looking for outsiders to invest in them.
This is the right approach to private investing iMO. The deals I have been in, while my knowledge was not as deep as @braumeister's, were all small, local, and with people I knew or knew of. The principals that I knew the least, a successful local restaurant group, were also the ones in the only deal that completely bubbled, to the tune of $50K gone. But losses are part of playing the game; I knew that.

It is the large deals being hawked to retail investors that ring alarm bells for me.
OldShooter is offline   Reply With Quote
Old 06-03-2020, 12:09 PM   #20
Recycles dryer sheets
sheldon cornped's Avatar
 
Join Date: Mar 2011
Posts: 183
Agree food is not that good. The McMen in McMinnville is pretty good and you can sit on top of the building and enjoy the sights and weather. McMen in Eugene not good for food or the beer last time we went. As an investment? Steer clear.
sheldon cornped is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
How to Invest John Hudson FIRE and Money 26 05-07-2004 05:08 AM
Should I invest in VCAIX? Convince me otherwise! ganda FIRE and Money 10 04-28-2004 02:55 PM
Re: Retiring at 33, where to invest the money? Bob_Smith Young Dreamers 35 02-07-2004 12:04 PM
Where to invest 30k for aging novice? dory36 FIRE and Money 7 10-16-2003 06:49 AM
Invest in futures contracts? Ted FIRE and Money 4 12-16-2002 05:39 AM

» Quick Links

 
All times are GMT -6. The time now is 11:33 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.